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Tips on how to assess your investment in the residential property

An accelerated market condition has renewed the investor interest. This has resulted in a 78% jump on a year-on-year basis in residential properties. Due to heightened interest amongst the home buyers and investors, the property prices have accelerated in preferred locations.

It is important to note that real estate, like financial markets, is not devoid of risk. These risks can be market, economic and developer-related risks. It is important to make sensible investments to manage & reduce risks in this sector. Thorough market research is important before investing in the property.

Here are some tips to investing in the right property:

Market Research
Before any investment, it is vital to determine the pulse of the property market. On zeroing the property or location of preference, it is important to assess if there would be a probable appreciation, infrastructure development, and neighbourhood and commute.

Type of Apartment
Most home buyers’ concern lies in the type of apartment considering the size of the family expands over a period of time. It is a decision that lies with every buyer to either invest long a term or short-term basis.

Price of Property
The choice of property in the residential sector is very perplexing. One should not just see the cost of the property but also if the property can incur returns if leased. The homes that have unique views or locations often become a selling point for the property. The income from rentals or appreciation of the property after five years should be taken as pointers to investment.
Residential projects which have closer to completion become a better investment compared to those that have a longer duration to complete. Residential projects in Worli, Prabhadevi, and Lower Parel are considered the upcoming residential properties in MMR due to the infrastructure developments like Coastal Road, and the Sewri-Worli elevator corridor that is expected to complete in September 2023. Homes that are closer to completion, like Vraj Tiara at Worli, become unique to the property market for their 3 & 4 BHK residences with sun deck opening to 270-degree uninterrupted sea views combined with an array of amenities like sky lounge, cafeteria, kids play area, etc. These features coupled with the proximity to good schools and business hubs make it investment-worthy.
In conclusion, real estate being a tangible asset requires a medium to long-term period to reap the benefit of investment. If one retains the property for long, then the risk of pitfalls can be averted and can divest at the right time. Thus, it is important to access the risk appetite and assess the time horizon.

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